To maximize one's satisfaction when deciding between two goods
A) one must consume at the point where the marginal utility of each good is equal,no matter the price of each good.
B) one does not need to consider opportunity costs.
C) one must spend more money than one has.
D) one must get the most satisfaction out of every dollar spent.
E) the price of each good considered must be equal.

Question

Quizplus · Accepted Answer

To maximize satisfaction, one should aim to get the most satisfaction out of every dollar spent. This means considering the marginal utility of each good in relation to its price and choosing the option that provides the most utility per dollar. While equalizing marginal utility between goods can be a helpful guide, it may not always be possible or practical, especially if the prices of the goods are vastly different. Additionally, one should always consider opportunity costs when making a decision, so option B is incorrect. Option C is not a viable choice since it involves spending beyond one's means. Option E may be helpful in some cases, but it is not a necessary condition for maximizing satisfaction.

To Maximize One's Satisfaction When Deciding Between Two Goods